Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gizem G. has bought the new Nimbus2020 for 80,000 Knuts and because the broomstick flies only with the wizard who bought it in the first

Gizem G. has bought the new Nimbus2020 for 80,000 Knuts and because the broomstick flies only with the wizard who bought it in the first place, the market value of this Nimbus2020 is always 0 from tha point on. Moreover, there is an annual cost of maintenance for the broomstick which Gizem has calculated to be as Cost(m) = 10,000 + 6,000 * (m-1), where m is the year. What is the AEC of this broomstick in its economic life year if the interest rate in the wizarding world is 0%? Write only the integer part of your answer with no currency sign or thousand seperators.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econophysics And Financial Economics An Emerging Dialogue

Authors: Franck Jovanovic, Christophe Schinckus

1st Edition

0190205032, 9780190205034

More Books

Students also viewed these Economics questions

Question

4. Why is it that correlations do not imply causation?

Answered: 1 week ago